Updates, Thursday, 12/20/2007 09:22:44 PM ET

AN EASY SETTLEMENT â€“ AIN’T IT SWEET?

by Mike Parnos

We're
well on our way to our 56th profitable month out of 61 and a great
start to our sixth tracking year for the CPTI portfolio.Unless the world comes to an end tonight (which
is unlikely), our CPTI portfolio positions will expire worthless and we'll
smile all the way to the bank again this month.If the world does come to an end, then all this won't really matter
anyway.

The
market bounced around today (Thursday) and finally traded up at the close prior
to tomorrow morning's settlement.It's
been a good month.We're in fine
shape.Even our traditional quickie
trades have an excellent chance of ending up 100% profitable.

The Release Of Your Maintenance
DollarsDon't
forget that, IF you have a good broker, your maintenance dollars will be
released during the day on Friday.They
will be available for other trades, if you choose to trade on Friday.What does that accomplish?Why is that a benefit?Because, if you put on a credit spread,
you'll be able to pocket the premium that would otherwise erode away over
Friday, Saturday and Sunday.It may not
seem like much, but if you get an extra nickel or dime x 20 contracts x two
options, you could be looking at almost $200.

So, if
your brokerage firm doesn't release your funds on Friday, dump them.They're a liability to your trading business.Looking for the best options broker?We discuss brokers in depth at my
seminar.Send me your phone number (Contact Support) and
I'll call you with details.This option
game is tough enough as it is.We need
to have as many things going for us as possible.We need positives, not negatives.

Expiration FridayExpiration
Friday often provides a little bit of extra volatility and excitement.You know that I enjoy trading on
Fridays.I'll be looking for a position
to add to our January CPTI portfolio - especially since our maintenance dollars
will be available.

Just
another reminder - remember to keep some powder dry for new positions and
potential adjustments, if needed, later in the month.After a few successful months, it's easy to
get over confident and to start trying to compound our profits.We've had four 100% profitable months in a
row since the August debacle.It's
natural to want to make back losses in a hurry.Compounding can be dangerous and needs to be done cautiously, in small
steps.You can increase your contract
size a little at a time.Keep your other
profits for new positions and adjustments.

If you
double or triple your contract size, you're increasing your exposure
unnecessarily.If another August
happens, you'll be SOL.This is not a
race, it's a marathon.You don't want to
shoot your wad at the beginning of the game.Patience, my friends.Patience.

Thank You For Your InputI'm in the process of
finalizing plans for the northeast seminar I've been asking about.I appreciate all the responses I've
received.They helped me zero in on a
weekend that will please the most attendees.I'll publish the specifics in Sunday's column.

Chicago is both centrally located and
easily accessible. We've been there twice before and filled the
room. I've chosen a hotel convenient to the airport - eliminating the
need to rent a car. You take the airport shuttle right to the hotel,
convenient and easy. Take advantage of the early bird special and save
$100. See the details below.

Join us as we discuss
non-directional strategies, trade selection, entry points, exit alternatives,
premium negotiation, maintenance alternatives, taxes, and much more - all
subjects necessary to enlighten and to maximize your trading business. As
you know by now, the seminars typically sell out.

There is now only one retake spot
available for the Chicago
seminar. Contact me as soon as possible if you would like to join
us.

CPTI DECEMBER
POSITIONS
CPTI December Position #1 - RUT Bull Put Spread - 767.54On 11/1, with the RUT at
806, we sold 20 December RUT 690 puts and bought 20 December RUT 680 puts for a
credit of $.70 ($1,400). Maintenance is $20,000. We may put on a
bear call spread in the future - IF it makes sense.

CPTI December Position #2 - SPX
Iron Condor - 1467.95On 11/16, with the SPX at
about 1450, we sold 20 December SPX 1320 puts and bought 20 December SPX 1310
puts for a credit of $.90 ($1,800). Then we sold 20 December 1570 calls
and bought 20 December 1580 calls for a credit of $.70 ($1,400). Total
net credit and profit potential of $1.60 ($3,200). Maintenance is
$20,000.

CPTI JANUARY
POSITIONS
CPTI January Position #1 - RUT Bull Put Spread - 767.54On 12/4, with the RUT at
752, we sold 20 January RUT 620 puts and bought 20 January RUT 610 puts for a
credit of $.60 ($1,200). Maintenance is $20,000. We may put on a
bear call spread in the future - IF it makes sense.

CPTI January Position #2 - SPX
Iron Condor - 1460.12On 12/10, with the SPX
fluctuating, we sold 20 January SPX 1340 puts and bought 20 January SPX 1330
puts for a credit of $.60 ($1,200). Then, we sold 20 January SPX 1630
calls and bought 20 January SPX calls for a credit of $.55 ($1,100). Net
potential profit is $2,300. Maintenance is $20,000.

CPTI January Position #3 - SPX
Bull Put Spread - 1460.12On 12/13, with the SPX at
1472, we sold 20 January SPX 1330 puts and bought 20 January SPX 1320 puts for
a credit of $.70 ($1,400). Maintenance is $20,000. We may put on a
bear call spread in the future - IF it makes sense.

ONGOING STRATEGY - THE ZERO-PLUS Strategy In the past, I
outlined a strategy based on an initial investment of $100,000. At that time,
$74,000 was spent on zero coupon bonds maturing in about seven years at a value
of $100,000. The principal $100,000 investment is guaranteed. We're trading the
remaining $26,000 to generate a "risk free" return on the original
investment. We are not compounding our profits by dramatically increasing the
number of contracts we trade. With the July profits, our new cash total is
$56,560 ($55,060 $1,500).

ZERO PLUS POSITION - SPX Bull Put Spread - 1460.12

On 12/13, with the SPX at 1472, we
sold 30 January SPX 1330 puts and bought 30 January SPX 1320 puts for a credit
of $.70 ($2,100). Maintenance is $30,000. We may put on a bear call
spread in the future - IF it makes sense.

Take your trading
from a "hobby" to a profitable "business." You need
the information you'll learn at my CPTI seminar. You'll learn more than the
"how to's" of trading our strategies. You'll learn a new lifestyle -
one that can last a lifetime.

DO YOU HAVE PROFIT-ABILITY?It's always a
challenge (and a pleasure) for me to have a roomful of bright people who have a
passion for, and are excited about, learning. We go over everything imaginable
- from the non-directional strategies to the psychology of trading. We cover a
lot more than the mechanics. Inquiring minds want to know the whens and the
whys -- not just the hows. That way, they're prepared for the best (and the
worst) - and know the best way to handle either situation. Contact me and I'll
personally call you with all the details.

If you're a SERIOUS
options trader, you want to learn the nuances of our advanced non-directional
trading strategies and hone your trading skills. Contact me ASAP at mparnos@optioninvestor.com.
Send me your phone number. I will personally call you with all the
pertinent information. The price is a bargain - ONLY $995.00 -- less than the
profit from one Iron Condor trade. Take advantage of the "early bird
special" and save $100. You'll have a two-day experience that you'll
remember, and profit from, for a lifetime. I limit my CPTI seminars to ONLY 25
ATTENDEES. And, as a bonus, if you attend one of my CPTI seminars, you
are entitled to RETAKEthe seminar a SECOND TIME at NO CHARGE!

55 OUT OF 60
PROFITABLE MONTHS!! WANT TO ACHIEVE SUCCESS WITHOUT STRESS?
OF COURSE YOU DO!!USE OUR CPTI WEALTH-BUILDING TECHNIQUES!

You should definitely
attend one of my seminars. With what you learn, you'll see a substantial
increase in your trading results. Contact me at: mparnos@optioninvestor.com.
If you've already signed up, I'll see you there. If you haven't signed up, what
are you waiting for?

HAPPY TRADING! Remember the CPTI
credo: Our remote batteries and self-discipline should last forever, but mierde
happens. Be prepared! In trading, as in life, it's not the cards we're dealt.
It's how we play them.MIKE PARNOS, Your Options Therapist and CPTI Master Strategist

Couch Potato Trader
DisclaimerAll results reported in this section are hypothetical. While the numbers
represented here may have been achieved or beaten by our readers, we make no
representation that any individual investor achieved these exact results. The
tracking for the plays listed in this section uses closing prices for the day
the newsletter is published and it is not meant to imply that any reader actually
received those prices (though many often do) or participated in these
recommendations (even though many do). The portfolio represented here is
hypothetical and for investment education purposes only. It is only an
illustration of what type of gains a knowledgeable trader might receive
utilizing these strategies. If you don't get close to these results, guess
what. It isn't the fault of the strategies.